How Asia Will Fare if Europe Cracks

As the Euro Zone Flirts With Disaster, Asian Economies Stand at Varying Degrees of Preparedness

By

Alex Frangos

Updated June 20, 2012 4:54 a.m. ET

HONG KONG—Greek elections may have assuaged fears of a European financial contagion spreading to Asia, at least for the moment. But as troubles brew in Spain, where borrowing costs shot up again Tuesday, and as Greece faces more painful cuts to meet bailout targets by September, many wonder who in Asia is most exposed should Europe's economy and financial system finally crack.

Lessons from the 2008 financial crisis show that while all of Asia tends to get hit when the world economy shudders, the severity differs...